Goldman Sachs Raises Marvell Price Target, Boosts EPS Estimates by 16%
Goldman Sachs raised Marvell’s price target and boosted 2026–2028 EPS estimates by about 16% after the chipmaker reported Q4 net revenue of $2.219 billion, up 22% year-over-year, with a GAAP gross margin of 51.7% and EPS of $0.46. Analysts forecast 0.25% quarterly gross margin erosion through 2026 and 0.5% in 2027 due to custom silicon mix.
1. Marvell Delivers Strong Q4 Financials
Marvell reported Q4 net revenue of $2.219 billion, a 22% year-over-year increase, with a GAAP gross margin of 51.7% and diluted EPS of $0.46. The company credited robust demand for its Data Center Interconnect modules and reaffirmed wins across major U.S. hyperscalers.
2. Goldman Sachs’ Upgrade Rationale
Following the earnings release, analysts raised the price target and increased 2026–2028 EPS estimates by an average of 16%, citing improved visibility into medium-term fundamentals. The team projects quarterly gross margin erosion of approximately 0.25% in 2026 and 0.5% in 2027 due to a heavier custom silicon product mix.
3. Implications for Broadcom Investors
As Broadcom’s main rival, Marvell’s outperformance and raised forecasts may pressure Broadcom to reaffirm its own growth outlook. Investors tracking Broadcom should monitor margin trends in the DCI module market and potential competitive pricing dynamics.